Credit Card Center Advertiser Disclosure†
11-09-2012 07:49 PM
Had to be a trouble maker but here is a fact.
Over the last few years my personal FICO has ranged 763 to almost 800 UNLESS it was run by a bank or other lending instuitution. When they run it it has been between 650 and 713.
Recently , ON THE SAME DAY it was run by Merryl Lynch , I ran my credit.
My low 763. Merryl Lynch exactly 713
Merryl Lynch will base their loan decision... interest rate, fees and approval based upon 713. They told me that what I run does not count. They have something "more" accurate???
If the lender can use a different formula to benefit their own institution how is that fair?
OK everyone reading this tell me how many versions of Fico are out there and who is using what version
11-09-2012 08:14 PM
Mortgage lenders pull FICO scores. The first question is where are you pulling your credit scores from? There a very places besides this site the will give you a FICO score. The lender for a mortgage will you your middle score IE not the highest or the loweest of the three scores. So if your middle score is from Experian and you pull Equifax form here you would see a difference.
11-09-2012 08:45 PM
Well, my mortgage was pulled by my bank and they pulled my FICO scores. So yes they are used by lenders. There are so many FAKOs out there that it gets confusing, and yes there are different FICO scores.
11-09-2012 11:37 PM - last edited on 11-10-2012 06:52 AM by llecs
What I am expressing is that if I obtained a score from myFico or several (or each) of the reporting credit bureaus I would have 3 scores... 775 763... 750. That is what I have done.
When ANY mortgage lender runs a credit inquiry from the exact same sources they will report back numbers like 713... 680... 735.
Its is a matter of the formula. Any lender can establish criteria to give them the results they require for their best interest.
THAT IS WHAT I THINK but I am seeking the truth
The FICO "we" as consumers desire to use as evidence of our credit worthyness and the numbers "we" purchase are worthless if some other party can establish a different formula which provides different results.
We should be able to purchase the same FICO score system used by Wells Fargo, Bank of America / Merryl Lynch
Note... this difference happened to me with 2 internet lenders, wells fargo, merrill lynch and even a little neighborhood bank. Everyone managed to produce the low score almost 50 points below what was available to me as a purchased item.
This low score has always been within the acceptable range for FnMae but each lender tried (some won) to raise the rate by 1/8th to 1/4. Chump change but multiply that by 10,000+.
5 lenders in a row... some big... some med and one small. Each was able to produce a low FICO.
PLEASE EXPLAIN how a FICO score I can purchase has any usefullness when dealing with a lender, car dealers (I had one of those and they backed off), insurance companies or even employers if they can control the results.
Fair Issacs might be useful, I have doubts, but on the assumption it is useful there must be honesty but most important consistency.
Some real smart attorney should start a class action suit. Imagine lenders hiding behind FICO when their true intent violated civil rights and associated laws. We can end red lining neighborhoods... not loaning to Hondurans and the handicapped... prevent gay people from getting loans.. your how old? No way we will make a 30 year loan... see your FICO score! Its only 2... yes we know Expierian, Transunion, Equifax state 800. Sorry we ran it and it is 2 not 800.
Off the subject... but I found one small bank making 2 million dollars NET a month by NOT making loans. They made most of it by charging processing and appraisal fees. As with most banks "they" own the appraisal management company and the UNDERWRITER. Why struggle and make loans when we make 2 million PROFIT a month turning people down said an insider. No federal oversight... no bad loans... no buybacks... just income.
Edited to remove a bad script - llecs, myFICO moderator
11-10-2012 04:51 AM
There are currently 49 different Fico Scores available. AS a consumer, we are able to purchase a couple of them. They have Fico scores for the Auto, Home, and Insurance industries to name some. When a mortage lender pulls your score, they will almost always be lower than the Fico Score pulled here as they us a Mortage Enhanced Fico Score.So, if it is a home mortage you are shooting for, get your FAKO scores as high as possible. Although there is no direct correlation between them, relatively speaking, the higher your visible scores at Kredit Karma, Quizzle, Sesame, etc. the better your Credit Reports will look on the real end.
11-10-2012 05:29 AM
OP, I'll add that if you pulled any scores from the credit reporting agencies, then know that none of the scores offered are FICO scores. Ignore them. Was that your source?
IME of myself and thousands of others on here, if you pulled your EQ FICO from myFICO.com on the exact same day as your mortgage lender, your two scores will exactly match. If you purchased a score from a 3rd-party like freecreditscore.com or even from Equifax.com, then know that you are pushed a FAKO score, not a FICO.
If you pulled your TU FICO on myFICO.com as your lender on the same day, the two scores may or may not match. Why? The two versions are different. While some mortgage lenders do use the same version as on here, most use a newer version. Other than your lender and myFICO, you cannot buy a TU FICO from anywhere. If you bought it from another source like TransUnion.com, then you are not comparing a FICO.
If you pulled an EX FICO from a source like Experian.com or elsewhere, then you don't have a FICO at all. Experian blocked consumer access to your own FICO a few years ago and you cannot buy it from anywhere. Other sites will sell an EX score, but it isn't a FICO and lenders don't use it.
I suspect you pulled a non-FICO and are trying to compare it to a FICO.
11-10-2012 06:40 AM - edited 11-10-2012 06:45 AM
I would agree that the OP is mixing FAKO and FICO scores. Hard to find any actual facts in the post.
The scores used for all normal mortgage applications are:
EQ Beacon 5 - The EQ FICO you get here.
TU FICO Risk Score, Classic 04 - One version later than the TU FICO you get here.
EX Fair Issac v2 FICO - The one you could get here before EX removed it in 2008 or so.
One thing I might add is that EQ does not seem to have the EQ FICO products buried so deeply on their website anymore. It does seem easier to find but you still have to know to look for a FICO score instead of their non-FICO scores.
11-10-2012 03:08 PM - edited 11-10-2012 03:13 PM
All the FAKOs and FICOs are a bit confusing becuase soo many can be purchased and every lender uses something different.
I would like to add that I think waaaayyy tooo much emphasis is focused on the actual numerical 3 digit number itslef.
If your prospective mortgage lender claims you have a lower than expected FICO score, couldn't you recon? Couldn't you say to them to look at your CR history?
"I got 25 years of CR history, an AAoA of 12.5 yrs, I have never been late, I don't have any collections, CO, or negatives, I have a good CLs and proven myself with a great credit mix and the abliity to pay off loans earlier than the term of the loans. I think you should give me a better rate becuase I am A paper based on my CR and not some arbitray numerical scoring model."
That might be something you'd say.
There seems to be way to much credit given to a FICO score.
ETA: We see this all the time on here. Where ppl post a thread saying something like "I need 3 more points added to my FICO before I close, what should I do?" Way too much emphasis on the number, IMO.
11-10-2012 07:49 PM
Yes, I have been on both sides of the fence. My experience is that the larger the bank the more they are number based. A smaller community bank or credit union knows more about YOU, your situation, and your reputation. One difference being, your local lender may charge a bit more. IMO, it is worth it's weight in gold. Several years ago, I went through a divorce, many banks would not lend me money for a new car because of DTI including child support obligations. One long time banking Officer did. I was forever greatful and paid the loan off four months early and every payment a week ahead to make him look good to the Board of Directors. The favor, priceless.
11-11-2012 09:09 AM
I know it's all confusing, but I think it's meant to be confusing. The less you know the better is their general stand on it. Just keep your reports clean and there really won't be an issue.
BTW,, to the OP.. You're font size is just irritating. Just so you know.